The Relationship Between State Aid and Nuclear Energy and A Legal Analysis of Nuclear Energy State Aid Cases in Terms of European Union State Aid Rules

Abstract

State aid to the nuclear energy sector has increased significantly within the last decade and in parallel to this increase, controversy about giving state aid to nuclear energy has soared. In addition to this controversy, the existence of a special treaty for nuclear energy, called the Euratom Treaty, exclusion of nuclear energy from the ‘Guidelines on State aid for environmental protection and energy 2014-2020’ and very intrinsic risks and market failuresrelated to the nuclear energy sector distinguish nuclear state aid cases from other energy state aid cases. Considering the scarcity of research dealing with increasing nuclear state aid cases in detail, this research intended to focus on the relationship between state aid and nuclear energy and analyse prominent nuclear state aid cases. During the research, prominent nuclear state aid cases which have shaped the case law and related legislations were analysed. It could be briefly concluded that nuclear state aid cases will likely continue to increase as energy markets become more competitive. But it is very clear that intrinsic risks of nuclear energy and related market failures stemming from imperfect market conditions are keenly appreciated by the European Commission and the European Courts, and nuclear cases are treated more leniently in line with these conditions. This sends a very clear message that the lenient approach of the Commission and the Courts toward the nuclear state aid cases will remain as long as market failures and the Euratom Treaty exist and in this regard, the absence of guidelines for nuclear energy, while it seems like a disadvantage, will ensure the needed flexibility of the Commission when making its state aid assessment in nuclear state aid cases.